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The years of dramatic cuts to the IRS’ budget has hamstrung the agency’s ability to enforce tax laws and fulfill its mission, according to a report by the Center for American Progress.
The non-partisan policy institute highlighted new data released by the IRS, as well as reports from the Congressional Budget Office and U.S. Treasury Inspector General for Tax Administration. “[They] provide even more evidence that the IRS needs to be substantially rebuilt, with its priorities directed toward policing tax cheating by wealthy individuals and corporations,” the report states.
In June, the IRS released its 2019 data book showing the serious the toll of diminished resources on audit. In fiscal year 2010, the IRS received around 230 million returns and had 13,879 revenue agents. In fiscal year 2019, the agency received 253 million returns—nearly a 10 percent increase, with only 8,526 revenue agents to examine them.
As a result, the number of IRS audits, especially for very wealthy individuals and businesses, has plummeted. In tax year 2010, the IRS examined nearly one-quarter of individual income returns with a reported income of $10 million or higher. For 2018 returns, the IRS has opened audits on only 0.03 percent of this group.
“Tax enforcement is about not just collecting needed revenue but also unrigging the economy for workers and honest taxpayers, while making sure the wealthy pay their fair share. These recent reports show the urgency of funding the IRS,” the Center for American Progress wrote.
NTEU continues to strongly advocate for increased IRS funding to help reverse the adverse impact of a decade of budget cuts. The union is supporting an additional $606 million in funding for the IRS included in the House ‘minibus’ funding bill approved last week. That amount is $78 million above the administration’s requested level.